Advising Beneficiaries

The enactment of the Trusts Act 2019 in January 2021 has seen a shift in the relationship between trustee and beneficiary. The Act encourages better transparency with beneficiaries by introducing a presumption that trustees will share basic information about the trust with its adult beneficiaries. Such information includes advising a beneficiary of the fact that they are a beneficiary of a particular trust; providing details of who the trustees are and their contact details; and providing a copy of the trust deed and any variations to the trust terms. This is to ensure that beneficiaries have sufficient information to be able to enforce the terms of the trust and the trustees’ duties against the trustees and holding them to account.

There are a range of factors for trustees to consider when deciding whether to apply the presumption, including:

• The nature of the interests in the trust held by the beneficiary and the other beneficiaries of the Trust;
• Whether the information is confidential (personal or commercial);
• The expectations and intentions of the Settlor at the time of creating the Trust;
• The age and circumstances of the benefciary and the other beneficiaries of the Trust;
• The effect that sharing the information will have on the beneficiary, trustees and other beneficiaries of the Trust;
• The effect that sharing the information will have on the family relationships;
• The nature and context of any request for information received from the beneficiary.

Tammy and the Trust Team are here to help with all the legal aspects of advising beneficiaries.
Contact us to discuss how we can help you.